Zcash price surged by double digits on Tuesday, continuing a recent rally that started on March 7. ZEC token jumped to a high of $275, its highest level since February 18, and up by 40% from its lowest level this month.
Zcash price rebounded after forming a double-bottom
The daily timeframe chart shows that the ZEC price has rebounded in the past few days, moving from a low of $195 to the current $275.
This rebound happened after the coin formed a double-bottom pattern, a common bullish reversal sign in technical analysis. Its neckline was at $330, its highest swing on February 14.
Zcash price has moved above the 50-day Exponential Moving Average (EMA). It is also nearing the important resistance level at $302, its lowest swing in December last year.
The token has jumped above the Ultimate Support of the Murrey Math Lines tool at $250. Additionally, the Relative Strength Index (RSI) has jumped from the oversold level of 24 in February to the current 61.
In addition to the double-bottom pattern, the rebound happened after the coin formed a falling wedge pattern, which is made up of two descending and converging trendlines.
Looking ahead, the token will likely continue rising as bulls target the next key target at $375, which is the Major S&R Pivot Point of the Murrey Math Lines tool.
ZEC price chart | Source: TradingView
Why the ZEC Price is Rising
In addition to its strong technicals, there are reasons why the ZEC price is rising this week.
The most important one is the fact that Bitcoin and most altcoins are in the green. Bitcoin jumped to $76,000 for the first time in over a month.
Other cryptocurrencies like Ethereum, XRP, and Chainlink have all jumped in the past few days. Historically, cryptocurrencies tend to move in sync with each other, with most of them rising when the Fear and Greed Index is in the green.
Zcash price is also rising as investors buy the dip as evidenced by the rising open interest in the past few weeks. Data shows that the interest rose to $466 million on Tuesday, up substantially from this month’s low of $282 million. Rising open interest is a sign that demand is soaring this month.
The same is happening in the spot market, where its volume rose to $2 billion on March 17, its highest level since February 15. It has been in a strong uptrend after bottoming at $494 million on March 15.
Zcash daily volume | Source: CoinGlass
Meanwhile, the rally is also happening a few days after Zcash Open Development Lab (ZODL) raised $25 million from Paradigm and Andreessen Horowitz. These funds will be used to build the Zodl wallet, a self-custodial platform aimed at the broader financial market.
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